Chief Executive Jesse Sutton said the overall retail environment for videogames remains challenging in both North America and Europe, but said second-quarter "Zumba Fitness" game sales "remained solid."

The company lowered its full-year earnings estimates by 5 cents, now forecasting 20 cents to 30 cents a share, reflecting "an anticipated challenging retail environment in the third fiscal quarter," it said. It affirmed its full-year revenue guidance of $130 million to $140 million.

The company, which publishes videogames for the Nintendo Wii and Microsoft Xbox gaming systems, has been working to diversify into more social and mobile games, coming out with its first Facebook-based game, "Mini Putt Park," earlier this year. It has become increasingly reliant on its "Zumba Fitness" workout-themed videogame series, which was released in 2010 and now includes a handful of titles for the Wii and Kinect for XBox 360.

While its sales growth had improved in recent quarters on the strength of its "Zumba" games, Wedbush Securities last week warned the long-term staying power of the games remains unclear, saying, "the fitness program could prove to be a fad, as so many fitness programs have before."

For the period ended April 30, Majesco reported a profit of $2.7 million, or seven cents a share, up from $2.1 million, or five cents a share, a year earlier. Changes in the fair value of warrants resulted in a benefit of $165,000 in the latest period, compared with a charge of $2.9 million a year earlier. Excluding stock-based compensation and change in fair value of warrants, earnings a year ago were 13 cents a share. Revenue sank 5.4% to $30.4 million.

Analysts polled by Thomson Reuters had expected a profit of 8 cents a share on revenue of $30 million.

Gross margin narrowed to 40% from 42.5%, as input costs fell 1.4%.

Shares closed Monday at $1.89 and were up 1.1% after hours. The stock is down 23% so far in 2012.

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